Insights

Market Commentary - July

The UK economy grew 0.2% for the three month period to the end of May. Many analysts believe this shows that the slow start to the year was attributable to the poor weather rather than a deteriorating economic background. Inflation held steady in June at 2.4% in spite of rising energy costs. Against the improving economic backdrop, the Bank of England voted unanimously to raise the base rate of interest from 0.50% to 0.75%.

The FTSE 100 closed the month up 1.46% on the back of falling Sterling. Sterling touched 1.30 against the Dollar in July, the lowest levels since November last year.

The on-off “Trade War” between China and America appears to be on again with President Trump confirming that there will be a US$34bn levy on Chinese goods. In retaliation, China has introduced a 25% levy on US products.

Oil fell 6.58% through July as output from the OPEC cartel increased.

Gold, a usual safe haven when volatility returns to markets, fell again in July as the strong Dollar continues to make it expensive for international investors.

31 July 18

1 month

6 months

12 months

FTSE 100

7,748.76

1.46%

2.86%

5.11%

GBP/USD

1.3126

-0.53%

-7.49%

-0.46%

GBP/EUR

1.1214

-0.78%

-1.76%

0.42%

Brent Crude (US$)

74.21

-6.58%

7.72%

40.95%

Gold (US$ per oz)

1,224.15

-2.27%

-8.99%

-3.57%

Nothing in this communication constitutes advice to undertake a transaction and professional advice should be taken before investing. Any observations are purely commentary on markets. This material is not investment research and the content should not be treated as an offer or invitation to buy or sell securities. Past performance is not a reliable indicator of future results and is no guarantee. The value of investments may fall as well as rise. Changes in exchange rates between currencies can cause investments or income to go up or down.